Floating LNG Market Poised for Increased Investment and Activity

Douglas-Westwood (DW) forecast total expenditure of $64.4bn from 2014-2020 in
its new FLNG market report. Two-thirds of this spend is attributed to
liquefaction infrastructure, while the remainder is for import and
regasification facilities.

The previous seven-year period saw minimal investment in floating liquefaction
infrastructure, however, with the introduction of floating LNG vessels, global
FLNG Capex is expected to experience significant increase over the next seven
years. Year-on-year growth over this period is forecast to average 64% per
annum and DW expect this increase to be more pronounced after the successful
start-up and operation of the pioneer FLNG vessels, such as Shell's Prelude
FLNG and Petronas' PFLNG 1.

DW anticipates more floating regasification units are to be sanctioned, with
Asia and Latin America being the dominant regions. In North America, however,
discovery of large supplies of shale gas has resulted in the shut-down of many
of its operational terminals and the cancellation of upcoming import
facilities. This development should reverse North America's traditional status
as a net gas importer to that of an exporter.

The World FLNG Market Forecast 2014-2020 forecasts activity through to
2020 and contains analysis of:

FLNG Import and Export Capacity - prospective installations
2014-2020, along with DW's forecast for the required Capex to bring this
capacity online. This includes construction of base-load FLNG liquefaction and
import (regasification) vessels.

Unique and proprietary data - updated year-round from published
sources and insight gained from industry consultation.

Methodology - the report uses research from DW's proprietary
‘World LNG Projects Database', an in-house information system exclusive
to DW. Our global analyst team is involved in the gathering and analysis of
FLNG market data through primary research and professional networks. A
project-by-project review of development prospects drives a data-rich market
model and forecast; with the timing of expenditure phased to reflect the
commercial structures of likely projects.